Industrial hemp offers significant potential for the bioeconomy. To harness this potential, investments in innovation and in scaling up industrial hemp production and processing are necessary. This is the key finding of an analysis of the industrial hemp value chain conducted as part of the “Bioeconomy Deep Dives,” carried out by the innovation hub RootCamp on behalf of the Landwirtschaftliche Rentenbank and the Federal Ministry of Food and Agriculture (BMEL).
Industrial hemp stands out due to its rapid growth and the ability to utilize all parts of the plant. For example, the stalk can be used as a CO₂-storing substitute for fossil-based construction materials, while the seeds can serve as oil and plant-based protein for both human and animal nutrition. Additionally, growing industrial hemp provides agronomic benefits by diversifying crop rotations.
However, the vast potential of industrial hemp is currently not being fully realized. In addition to strict regulatory requirements regarding the THC content of the plants, the limited breeding activities are a major factor hindering the full use of all plant components. Investments in processing infrastructure are urgently needed to build capacity that enables economically viable production. At the same time, the benefits of growing industrial hemp are still not widely known among farmers.
Our “Deep Dive” identified obstacles and outlined measures to overcome barriers to the production and processing of industrial hemp. Five key recommendations for action were developed, focusing on innovation and the scaling of production and processing. These include intensifying research and breeding of hemp varieties to enhance the usability of the plant’s components. Building regulations should be adapted, and the potential for using hemp more intensively in human nutrition should be explored. Investments in processing infrastructure could unlock economies of scale. Additionally, increased public awareness efforts would help reduce skepticism.
Dr. Philipp Rittershaus, Head of Corporate Innovation & Startup Coaching at RootCamp, adds: “With the Bioeconomy Deep Dives, we’ve developed a collaborative format to future-proof value chains. By directly involving stakeholders from the various stages of the value chain, we can identify barriers to scaling and gaps in innovation.” He continues, “Based on expert interviews and a concluding workshop, we work together with relevant stakeholders to specify problems and develop solutions. Afterwards, we aim to work with those involved to implement these solutions in practice.”
The next issue of "Bioeconomy Deep Dives" will focus on the lignin value chain and will be published in autumn 2025. If you want to be part of the next Deep Dive workshop, contact us for more information!